Drag each tile to the correct box.
Arrange the steps in order to show how expansionary fiscal policy
affects an economy.
Tiles
Employment increases to meet the demand of
consumers and businesses.
Consumers and businesses have more money,
Output and prices begin to rise.
The government lowers the tax rate.
Consumers and businesses spend more money.

First step: The tax rate is being reduced by the government.
Second step: The consumers and businesses have maximum money.
Third step: More money spent by consumers and businesses.
Fourth step: The demand by consumers is being met due to rising of employment in businesses.
Fifth step: There is a rise in output and price of products.

What is a fiscal policy?

A fiscal policy is one of the policy being applied by the government in order to control the expenditure and taxation structure of country. It helps in increasing the economic growth and reduction of poverty in the country.

The steps in the fiscal policy being implemented in a provided order:

Firstly, the government makes reduction in rates of taxes.
Secondly, after tax reductions, the people and business entities get more money for spending and saving.
Thirdly, both the entities spent maximum money as they can save more money due to lowering of taxes.
Fourth, this increases the demand of goods and services being manufactured which requires more labor to be employed.
Fifth, the production output and price of products being risen considerably after increasing demand.

Therefore, the steps are being totally matched in the order relating fiscal policy.

Learn more about the fiscal policy in the related link:

https://brainly.com/question/27250647

#SPJ5